Strategy #1: Sell First

The “Sell First” strategy is ideal for the move-up buyer who can’t afford to pay two mortgages simultaneously. Selling your property first eliminates the risk of having to carry two mortgages if you don’t sell your existing home in time. It also reduces the chances of having to reduce your asking price in the interest of speeding up the sale.

This is a good option for move-up buyers who are banking on the proceeds of their sale to fund their new (and likely more expensive) property. By selling first, you’ll know exactly how much money you have to purchase your next home.

Strategy #2: Buy First

If homes in your area of choice are selling faster than the ‘For Sale’ signs can hit the front lawn, the “buy first” strategy might be the way to go. By buying your new home before selling your old one, you won’t feel rushed into settling for a sub-par property or seeking alternative temporary housing options while you shop the market.

This move-up buyer still lives in his or her existing home, allowing them time to shop around and continue looking until they find that perfect place. This move-up buyer typically requires a bridge mortgage.

Strategy #3:  Time And Align

When all is said and done, this move-up buyer approach is the most ideal, but getting there is another story. Aligning your purchase and sale closing dates can be tricky. Remember that there are three dancers in this tango – you, the person you’re buying from, and the person you’re selling to. You’ll also have to move out and move in on the same day.

In this scenario, time is your best friend and flexibility your saviour. This means you’ve planned ahead – researched neighbourhoods, gotten pre-approved for a mortgage, and started the organizing and de-cluttering process before the big move.